Rural Marketing

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Rural Marketing

  1. 1. Rural Marketi ng Going local Touseef R Bhat ID:09PR00014B062 12/21/2009
  2. 2. a demand in the market. Out of the lots, ‘ethnic origin’ and ‘indigenous design & Rural Marketing: appearance’ are Going local two traits of rural products, attracting a premium in the market. But, contrary to this, Distinct from the other types of markets like the non-uniformity of rural products (from stock market, commodity markets or Labor one another) and lack of its quality control economics. Rural Markets constitute an measures has been creating a negative important segment of overall economy. The demand. Besides, the small sized and overall growth of the economy has resulted dispersed production units of these rural into substantial increase in the purchasing products hinder realization of the economies power of the rural communities, On account of scale in marketing and result in high of the green revolution in India; the rural transaction costs per unit of output. Niche- areas are consuming a large quantity of based products have no local market. industrial Dabur’s rural strategy covers villages with and urban manufactured products. In this population of around 3,000 across several context, a special marketing strategy, states. The company has also moved from namely, rural marketing has taken shape. traditional media options and directly Armed with innovative pricing and smart engages with customers with ideas like a marketing strategies, marketers are rural beauty and talent contest etc. venturing deep into the hinterland looking Rural India will consume more of consumer for more buyers and rural India is happy to items like toothpaste, Soap, detergent, be wooed. Until 20 years ago, rural coffee, Ketchup and jam which currently marketing were synonymous with farmers. have less than 30% penetration in rural and The television revolution, Liberalization of semi-urban areas. And in the future 2-3 the economy and increased competition has years this market will account for 90% of forced marketers to move deep into the the consumption of fast-moving consumer country-side. What’s truly reinforced this goods in the country as consumption in reality is a steady demand for products ad urban areas will stagnate. services from rural India, despite the Companies like Hero Honda, Titan and economic slowdown. nokia have been working on their rural In a rural road show called Dream Home strategies and they are now rolling out series. Samsung hosts four-day exhibitions products and services to capture a share of in small towns. The company hires a place the wallet of this hungry consuming class. to showcase its products and engaged vans Har Gaon Har Angan seeks to build an on- to popularize the events. |it offers various going relationship with millions of deals on its products and builds brand households in rural India through a network awareness through theses events. of 500 rural sales executives. The Hero Rural products of India are unique, Honda set up a rural vertical in 2007 to innovative and have good utility and values. approach this market in a very much focused Large number of these rural products (like manner and seeks to reach 25000 villages at handicraft items, food products, embroidery, the end of this December. Currently the clothes & other products) sustains a company is carrying out foundation activity significant segment of the population in the to connect with the consumers as word of rural areas. Several attributes of rural mouth is very important in this segment. products can be identified, for which, it has
  3. 3. industry’s intervention will also empower the rural mass (producers, farmers & The basic scope of this novel initiative will entrepreneurs) to cope with socio-economic be the mutual benefits of the rural problems in the rural society and will ensure entrepreneurs and industries. The economic self –reliance. entrepreneurs – primary beneficiaries, SHGs Rural India does hold maximum of India’s – bridge with the community, participating population, so opportunity wise it’s a companies/industries and rural consumers promising land but biggest issue for entire have befitted through a robust commercial country is infrastructure a better thought relationship. These models of marketing about and planned one. linkages demonstrate a large corporation Global warming is already killing which can play a major role in reorganizing agriculture, middle men conning is already markets and increasing the efficiency of a putting farmers at verge of suicide rural product generation system. While etc.Whoever is going to target rural area, doing so it will benefit farmers and rural need to have customized solutions since a communities as well as shareholders. widened gap and culturally different Moreover, the key role of information earning’s and lifestyle of urban and rural technology—provided and maintained by area exists to great extent, customized the industry/company for building linkages, solutions is the key, hopefully pre-packaged and used by local farmers—brings about in some device like mobile phone that transparency, increased access to people already use. The bare minimum information, and rural transformation. necessities need to be provided much ahead Besides, this strategy of market linkage, of Internet, but I still think some scenarios addresses the challenges faced by rural can be fulfilled in a much better way with entrepreneurs due to institution voids, some basic Internet capability, which can numerous intermediaries and infrastructure really make a difference. Essentially just bottlenecks. Moreover, the prime scope of cheaper, richer and better communication this model is the creation of opportunities with the outside world to explore the for the rural entrepreneurs for product potential of differentiation and innovation by offering Rural markets, critically analyze the rural them choices. Because of this sustainable market opportunities so as to formulate market linkages, rural producers can better marketing programmes. Discussion participate in the benefits of globalization would also involve issues related to and will also develop their capacity to segmentation, targeting, and position and maintain global quality standard. other key strategic issues. Nonetheless, it creates new stakeholders for the industry sector. And subsequently, they Customer acquisition in rural areas may be become part of the firms’ core businesses. difficult, but retaining them is not because The involvement of the private /industry the rural consumer is not a fickle. sector at the rural product and market development can also provide opportunities for the development of new services and values to the customers, which will find application in the developed markets. It will be worth mentioning that building a sustainable market linkage through

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